Rise in number of cases under investigation in 2016-17: Sebi’s annual report

Mumbai - Market regulator Sebi reported a rise of 84.21% in the number of cases it took up for investigation during 2016-17.

According to the regulator's annual report 2016-17, 245 new cases were taken up for investigation and 155 cases were completed compared to 133 new cases taken up and 123 cases completed in 2015-16.

"There was a comparative increase in the number of cases taken up during 2016-17 mainly due to the references received from the Department of Income Tax in the matter of long term capital gain, short term capital loss in various scrips," the report said.

"During 2016-17, 76% (185 out of 245) of the cases taken up for investigation pertained to market manipulation and price rigging compared to 63% (84 out of 133) cases in 2015-16."

The market regulator initiates investigations based on references received from sources such as its Integrated Surveillance Department, other operational departments within Sebi and external government agencies.

"After an investigation is completed, penal action is initiated as approved by the competent authority wherever violations of laws and obligations relating to the securities market are observed," the report said.

"The action taken includes issuing warning letters, initiating enquiry proceedings for registered intermediaries, initiating adjudication proceedings for levy of monetary penalties, passing directions under Section 11 of the SEBI Act, 1992 and initiating prosecution and referring the matter to other regulatory agencies."

Tag Cloud

Tags

About Us

The Finapolis helps you grow your money. We offer insightful journalism, credible research and actionable advice suitable to every Indian taxpayer, making us a one stop destination for your personal finance needs.

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.